Olin's Q3 Earnings Miss, Revenues Surpass Estimates, Down Y/Y

Core Insights - Olin Corporation reported a third-quarter 2024 loss of $24.9 million, equating to a loss of 21 cents per share, contrasting with a profit of $104.1 million or 82 cents per share in the same quarter last year, and missing the Zacks Consensus Estimate of earnings of 3 cents [1][2] Financial Performance - Revenues for the quarter decreased approximately 4.9% year over year to $1,589.5 million, surpassing the Zacks Consensus Estimate of $1,571.1 million [2] - The Chlor Alkali Products and Vinyls segment generated revenues of $871.6 million, down around 10.1% year over year, but exceeded the Zacks Consensus Estimate of $851.5 million, impacted by lost sales due to Hurricane Beryl and lower pricing, particularly for caustic soda [3] - The Epoxy division's revenues fell approximately 11.3% year over year to $285.1 million, missing the consensus estimate of $315.6 million, primarily due to lower volumes and Hurricane Beryl-related sales losses [4] - The Winchester segment saw revenues rise around 13.8% year over year to $432.8 million, beating the consensus estimate of $414.9 million, driven by increased international military sales and military project revenues, slightly offset by declining commercial ammunition sales [5] Financial Position - As of September 30, 2024, Olin had a cash balance of $225.9 million and $2.7 billion in net debt, with an adjusted EBITDA ratio of 3X, and approximately $1 billion in available liquidity [6] - The company repurchased roughly 1 million shares of common stock for $45.4 million during the third quarter, with around $0.7 billion remaining for share repurchase authorization [7] Outlook - Olin anticipates lower demand for caustic soda, although global demand is gradually improving, and expects a seasonal reduction in adjusted EBITDA for its Chemical businesses for the quarter, excluding Hurricane Beryl's impact, projecting adjusted EBITDA between $170 million and $200 million [8] Stock Performance - Olin's shares have declined 2.5% over the past year, in contrast to a 6.7% rise in the industry [9]